this
page to explain on two examples , the Italian Buy & Restore mortgage procedure and payments
.

MINIMUM
MORTGAGE AMOUNT ALLOWED

100.000
euro

smaller
mortgage requests are not accepted

According
the italian banks standards requirements , the foreign borrower can
receive a mortgage till max 80% on the
property commercial value , calculated once the restoration works have finished
. This calculation has to confirmed by the bank survejor .

EXAMPLE 1

Basis
Points

A) the borrower buy a property whose the commercial value is 120.000,00 euro
B) the commercial value of the property , once the restoration works are
finished will 300.000,00 euro
C) the borrower has an income that they can receive a mortgage for
300.000,00 euro

Therefore
the bank will pay a maximum mortgage of 300.000,00-euro

1> At signing (1) of the deed of purchase/ mortgage the bank will pay
to the borrower , a sum of 72.000,00 euro ( equal to 60% of
the property commercial value , at purchase time)

(1)
according
italian mortgage law , the payment will be made afther the
mortgage on the property is estabilished , usually 5/10 days after
registration of the deed of the purchase .

2>
The bank pay to the borrower the remaining 228.000,00 euro , during
restoration works , in more SAL ( state of woks advancing ), based
on expertises maked by bank survejor , asked by borrower
time to time when him necessity of money to proceed. To receive the
last payment , is necessary that the borrower provide to the
bank the certification that the property is habitable . The final payment
must be made no later than 24 months from the date of the mortgage
contract signing.

EXAMPLE 2

Basis
Points

A) the borrower buy a property whose the commercial value is 120.000,00 euro
B) the commercial value of the property , once the restoration works are
finished will 300.000,00 euro
C) the borrower has an income that they can receive a mortgage for 150.000,00 euro

Therefore
the bank will pay a maximum mortgage of 150.000,00-euro

1> At signing (1) of the deed of purchase/ mortgage the bank will pay to the
borrower , a sum of 72.000,00 euro ( equal to 60% of the
property purchase commercial value )

(1)
according
italian mortgage law , the payment will be made afther the
mortgage on the property is estabilished , usually 15 days after
registration of the deed of the purchase .

2>
The bank pay to the borrower the remaining 78.000,00 euro , during
restoration works , in one or more SAL ( state of woks advancing ), based
on expertises maked by bank survejor , asked by borrower
time to time when him necessity of money to proceed. To receive the
last payment , is necessary that the borrower provide to the
bank the certification that the property is habitable . The final payment
must be made no later than 24 months from the date of the mortgage
contract signing. .

VERY IMPORTANT > in any case , in the time between the
first and the last mortgage payment , the borrower will be pay the bank
installments composed only of the interest on principal
payed . The full first payment of principal and interest will be
required AFTER the bank have been payed the full amount of the
granted mortgage .

Fixed interest
rate
is freezed at mortgage contract signature and remain freezed for all
mortgage duration . The fixed Interest is the sum by the Bank Spread on the term
of the mortgage in year (duration) , added to Eurirs correspondant ,
working at the date of mortgage contract signature.

Variable interest rate vary month by
month according Euribor monthly basis . The variable interest rate is the sum by
the Bank Spread on the term of the mortgage in year (duration) , added to
Euribor correspondant , working at the date of mortgage contract
signature.